Contentious plans have been unveiled to tear down a popular Newquay hotel and build 65 apartments and a shop on the site.

After 34 years of ownership, Will Hatfield and his 83-year-old mother Margaret have made the decision to sell the Carnmarth Hotel on Headland Road to London-based developer SJA Estates, subject to planning permission.

The Hatfield family says it has decided to sell the site, which was converted into a hotel in the 1930s, because it needs substantial reinvestment.

Mr Hatfield says the hotel will remain open until at least October 2018.

The developer is proposing to tear down the hotel and replace it with a new apartment block, which would include one and two-bedroom maisonettes and one, two and three-bed flats.

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There will be a ground floor commercial area comprising of a shop and café, with two storeys of underground car park providing one parking space for each home.

The Carnmarth Hotel on Headland Road

But if Cornwall Council planners turn down the application the Hatfields will continue to run the hotel business.

So far 18 people have officially objected to the developer’s plans on Cornwall Council's planning website.

Residents say they are concerned about the size of the development, a loss of privacy, noise, a lack of parking and increased traffic in Headland Road.

However the developer states that residents were “overwhelmingly supportive” of the scheme following a public consultation event which was held in July, with only one individual raising concerns.

An image of how the new development could look

A spokesperson on behalf of SJA Estates said: “The existing hotel requires significant investment to continue to operate in its current form, which will not be realised.

“The hotel’s senior partner, who has been involved in the family business for nearly 40 years, is now 83 and no longer capable of supporting a re-financing package. It would, quite naturally, be her wish to attain the asset value of the site as part of a pension fund.

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"Due to the changes in the holiday market, a potential buy-out by the junior partners is not viable. There has been a vast decline in the coach travel market and this has resulted in the hotel competing in markets with those hotels that are providing much higher quality facilities, such as swimming pools and spas.

An image of how the new development could look

"The hotel has also been affected by recent changes to legislation in respect of minimum wage levels.

"Due to the redevelopment of many other sites on Headland Road, the characteristics have altered to those of a high amenity residential street.

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"As a result the hotel has been subject to complaints from residents of noise and other disturbance, including arising from the significant traffic for functions that could impact the viability of the hotel to continue as a late-night licenced premises.

“The design process has been comprehensive and has evolved through the pre-application process involving the local authority and community.”

An image of how the new development could look

A decision on the application is due to be made by Cornwall Council’s planning committee by the end of December.

Planning officials are also yet to make a decision on plans to transform three other former Newquay hotels into apartments.

Another developer is proposing to demolish the Edgcumbe Hotel on Narrowcliff, which has been closed since 2015, and replace it with a five-storey apartment block, comprising 61 one, two and three-bedroom apartments.

Further down the road, developer Cornovia Homes is hoping to construct ten two-bedroom apartments on the site of the former La Hotel Felicia on Henver Road, which has already been demolished.